1. Corporate Information :

Tarmat Ltd. was established in the year 1986 by Mr. Jerry Varghese. The company is specialized in the construction of Airfield and National/State Highways all over India. The present works include construction of heavy duty parking bays at Bangalore International Airport, construction of airport runway, taxiway, apron, approach road, peripheral road etc at Gulbarga & Shimoga, recarpeting of Main Runway at Gwalior and Awantipur Airports, four laning project of Napgur-Hyderabad National Highway, construction of internal roads for Sai Sansthan Trust, Shirdi etc.

The company had its IPO in 2007 and got listed in BSE and NSE. The present paid up capital of the company is Rs. 109607070, of which 60.328% is held by the promoters.

2. SIGNIFICANT ACCOUNTING POLICIES

2.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS -

These financial statements have been prepared in accordance with the Indian Accounting Standards (hereinafter referred to as the ‘Ind AS’) as notified by Ministry of Coporate Affairs pursuant to Section 133 of the Companies Act, 2013 and the Companies (Indian Accounting Standards) Rules, 2015, as applicable.

The financial statements for the year ended 31st March, 2018 are the first financial statements prepared by the Company under Ind AS. For all periods upto and including the year ended 31st March, 2017, the Company prepared its financial statements in accordance with the accounting standards notified under the section 133 of the Companies Act, 2013, read together with Rule 7 of the Companies (Accounts) Rules, 2014 (hereinafter referred to as ‘Previous GAAP’) used for its statutory reporting requirement in India immediately before adopting Ind As. The financial statements for the year ended 31st March, 2017 and the opening Balance Sheet as at 1st April, 2016 have been restated in accordance with Ind AS for comparative information. Reconciliations and explanations of the effect of the transition from Previous GAAP to Ind AS on the Company’s balance sheet, statement of profit and loss and statement of cash flows are provided in note 1.3 d.

The financial statement have been prepared on accrual and going concern basis. The accounting policies are applied consistently to all the periods presented in the financial statements, including the preparation of the opening Ind AS Balance Sheet as at 1st April, 2016 being the date of transition to Ind AS. All asset and liabilities have been classified as current or non current as per the Company’s normal operating cycle and other criteria as set out in the Division II of Schedule III to the Companies Act, 2013. The Company considers 12 month as normal operating cycle.

The Company’s financial statements are reported in Indian Rupees, which is also the company’s functional currency and all values are rounded to the nearest lakh except otherwise indicated.

a. Terms / Rights attached to equity shares

The company has only one class of equity shares having a par value of Rs.10 per share. Each Holder of equity shares is entitled to one vote per share. The company declares and pays dividend in Indian Rupees. The dividend (if any) proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholder

c. Shares held by holding /ultimate holding company

Tarmat Ltd has no holding company. Hence the number of shares held by Holding/ultimate company is NIL

d. Details of shareholders holding more than 5% shares in the company

3.1 Additional Information to Secured Long Term Borrowings

The long term portion of term loans are shown under long term borrowing and the current maturities of the long term borrowings are shown under the current liabilities as per the disclosure of the Revised Schedule VI.

3.2 Details of Securities and Terms of Repayment Secured (Term Loans)

Srei Equipment Finance Private Limited

Secured by first charge by way of hypothecation of specific movable assets as described in the Annexure to Schedule of the loan agreement executed on August 8, 2011 (for disbursement of Rs.72lacs), on August 15, 2011 (for disbursement of Rs.28lacs), on October 15, 2011 (for disbursement of Rs.250lacs), on December 5, 2011 for disbursement of Rs.60lacs) on March 15, 2012 (for disbursement of Rs.20.68lacs and on March 15, 2012 (for disbursement of Rs.40lacs)

The Company has paid the dues during the year and the account is settled and cleared.

Kotak Mahindra Bank (Term Loan)

a. Secured by way of subservient charge on all existing and future current assets of the company

b. Equitable mortgage of residential flat at Bandra, Mumbai in the name of Mrs. Saramma Varghese

c. Equitable mortgage of residential flat at Bandra, Mumbai in the name of Mr. Dilip Varghese

1. Cash Credit Limits - Note 8 (A) (a)

A) Vijaya Bank

Secured by way of: First charge on stock and book debts and other receivables.

Collateral securities

a. Unencumbered Plant & Machinery

b. Mortgage of factory land at Shirdon, Taluk Panvel, Dist Raigad standing in the name of Mr. Jerry Varghese c Mortgage of Non Agricultural land at Nasik standing in the name of Mr. Jerry Varghese

d. Mortgage of Plot No.19, Sector 24, Vashi, Navi Mumbai in the name of the company

e. Mortgage of land & residential flats at Sector 24, Vashi, Navi Mumbai in the name of the company

f. Mortgage of land & building at Goregaon East, Village Malad, Mumbai in the name of the company

B) Kotak Mahindra Bank

a. Secured by way of subservient charge on all existing and future current assets of the company Collateral securities

a. Secured by mortgage of specific fixed assets of the company.

b. Equitable mortgage of residential flat at Bandra, Mumbai in the name of Mrs. Saramma Varghese

c. Equitable mortgage of residential flat at Bandra, Mumbai in the name of Mr. Dilip Varghese

Default

However the Company has arrived at a settlement with Vijaya Bank and has started the payment as per as per the terms and conditions as agreed upon by the Company with Vijaya Bank.

The company has not received any information from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures relating to the amount unpaid as at year end together with interest paid/payable under this act has not been given.

Note No. 4 Related Party Transactions

Information on Related Party Disclosures as per Accounting Standard 18 (AS-18) on Related Party Disclosures is given below:

For the year ended 31st March 2018

a) List of related parties with whom the company entered into transactions -

Note No. 5 Segment information -

1) Segment information

a) Primary Segment

The business segment has been considered as the primary segment. The company is engaged in only one reportable segments viz Construction.

b) Secondary Segment

The company operates in India and hence there are no geographical segments.

Note No.6 Additional Comments

1) On assessment of the impairment of fixed assets of the company as at the Balance Sheet date as required by Accounting Standard 28 “Impairment of Assets” issued by the ICAI, the company is of the view that no provision for impairment of fixed assets is required.

2) In accordance with Accounting Standard 11 (revised), the net exchange gain credited to profit & Loss account is Rs. Nil/- (Previous year debit Rs. Nil)

3) In the opinion of the Board the current assets and advances if realized in the ordinary course of business have value on realization at least to the amount at which these are stated in the Balance Sheet. The provision for all known liabilities are adequate and not in excess of the amount reasonable necessary.